Your Life

Your Life

Major life milestones often have a major tax impact. Changes in your marital status, having a baby or adopting a child can have significant impact on your taxes. This is the place to ask questions about dependents, real estate, and other various scenarios that play a significant role in what taxes you pay.

Posts: 1
Registered: ‎04-10-2018

Flex-account for child care (day care) is still being taxed on HR Block online form

My employer has a flex-care account for dependent child care. I used the max amount, $4999, which was deducted from my account over 2017, before taxes. My total day care expenses were about $9900.


My employer listed the $5000 under Box 10 on my W2. When I enter this amount in on my HR Block online tax form, it increases the amount of taxes I have to pay, even though this money was taken out pre-tax and should be lowering my tax rate.


I then go to fill out form 2441 for the child care credit, and it says I don't qualify. What is happening? Is there a mistake in the HR Block tax calculator? I shouldn't be paying tax on this $5000 flex-care account. Did my employer make a mistake? Or is there some other form that I am missing? 


Very confused.